- Exelixis (EXEL +1.5%) and development partner Genentech (OTCQX:RHHBY) have reached a settlement in their dispute related to their collaboration agreement for cancer med COTELLIC (cobimetinib). The partners have agreed to amend their contract to revise the revenue and cost-sharing arrangements.
- Under the terms of the updated agreement, Exelixis will continue to be entitled to an equal share of U.S. profits and losses which will decrease as sales ramp (per the original 2006 contract). Effective July 1, the revenue applied to the P&L statement for the COTELLIC collaboration will be calculated using the average of the quarterly net selling prices of COTELLIC and any branded Genentech products prescribed with it. Exelixis will continue to share U.S. commercialization costs while Genentech's share will now be allocated to the collaboration P&L based on the number of products in the combination.
- Exelixis will continue to co-promote COTELLIC in the U.S., providing up to 25% of the salesforce. Ex-U.S., it remains eligible for sales-based royalties per the 2006 agreement.
- Previously: Update on dispute between Exelixis and Genentech (Jan. 9)
- Now read: Exelixis: Substantial Unlocked Value In The Cabozantinib Franchises
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